– Now the peak has been reached – E24

– Now the peak has been reached – E24

Norges Bank's interest rate decision was as expected.

Published:

The issue is updated.

The Bank of Norway decided on Thursday to keep the interest rate unchanged at 4.5 percent.

– Now the peak has been reached, it seems, says chief economist Marius Gunsholt Hof at Handelsbanken when the decision was announced.

Kari Due Andresen follows the Akershus Eiendom interest rate meeting Live with VGTVand gives HOV support.

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– What you can be happy about now is that we are at the peak of interest rates. She says it probably won't get any worse.

Andersen says the upcoming inflation numbers and salary adjustments will be interesting to watch.

Central Bank Governor Ida Wolden-Basch said in recent meetings that the interest rate is likely to remain at the same level for some time to come.

And so this time too.

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Norges Bank keeps interest rates unchanged

– Perhaps we will have to maintain the interest rate at the current level for some time to come in order to return price growth to the 2 percent target within a reasonable period of time, says Central Bank Governor Ida Welden-Basch in the letter.

The Bank of Norway has previously indicated it will cut interest rates this year, but not before the fall.

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“The forecast we put forward today is that the key interest rate will remain at 4.5 percent until the autumn, before gradually falling,” Norges Bank wrote in the last decision.

The report from Norges Bank indicates that the interest rate will be cut once during the fourth quarter, says chief economist Sarah Midtgaard at Handelsbanken.

– She says it's not as bad as one feared.

They also record little change in the interest rate path, as expected.

– This is good news for mortgage holders.

Chief Economist Sarah Midtgaard at Handelsbanken.

“You can be sure that the interest rate peak has been reached, and then you have to bet that the interest rate will stay high for a little longer,” says chief economist Elisabeth Holvick at Sparebank 1.

It notes a warning that if the krone weakens further, Norges Bank is prepared to raise interest rates further.

This is so that one does not raise hopes of an imminent cut in interest rates, according to Holvik.

– Norges Bank keeps interest rates high until it is confident that the krone will not weaken.

It also suggests that Norges Bank is waiting to cut interest rates to see what other central banks choose to do.

On Wednesday, the E24 Interest Rate Board also met with the hope that the key interest rate will remain steady.

They linked more excitement to what the central bank will do if the wage settlement is new.

-We know that core inflation has come down a lot, but it is still very high. “We are facing a potentially expensive wage settlement,” says Marius Gunsholt Hof, having carefully read the letter from Norges Bank.

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The Central Bank estimated wage growth this year at five percent.

The spring wage settlement is underway after parties to the frontline trade settlement exchanged demands on Monday.

The Trade Union Confederation Fellesforbundet demands a wage supplement that guarantees an increase in purchasing power, meaning that wage growth must be higher than price growth, which is estimated at 4.1 percent.

Dalila Awolowo

Dalila Awolowo

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